This article first appeared on The Hindu BusinessLine on February 04, 2025
Following the recent decision by the newly appointed Trump administration to dismantle the humanitarian aid agency, the United States Agency for International Development (USAID), data show that this decision will not impact India substantially.
From 2015 to 2024, India received around $1.5 billion from the USAID, and the share of funding to India remained flat in this period in the range of 0.2 per cent to 0.4 per cent of USAID’s total global funding.
USAID funding to India has seen fluctuations over the years. In 2014, around $120.4 million was disbursed to India, which increased to $136.3 million in 2018. In the post-pandemic years, it has been growing, with 2022 recording the highest disbursements with $251.2 million in total. However, it dipped to $159.7 million in 2024.
A substantial portion of the total funds received by India goes towards the development of sectors such as health and the economy.
According to data from foreignassistance.gov, the US government funded India’s health sector with around $54.7 million in 2020, which increased to $189.5 million in 2022. However, it declined to $79.3 million in 2024. They provided around $17.2 million in 2020 for its economic development, which rose to 26.7 million in 2023 and further increased to $34.4 million in 2024.